COVID-19 has impacted many sectors, industries, and supply chains struggling to recover from the financial losses. It has impacted manufacturers all over the world, and the Indian FIBC manufacturers are no different.
It started with the announcement of a complete Lockdown by the Central Govt. of India on the eve of March 24th, 2020. All industries (except for essential products and services) remained closed for an extended period. Also, the FIBC manufacturers were advised to close all operations as the country came to a standstill. It triggered waves of immigrants who moved back to their homelands and could not return to work when the government had permitted them to start operations again. The manufacturers were sitting with huge backlogs and were operating well below their production capacities.
The sudden drop in the production capabilities triggered lead times from 4-5 weeks to 15-20 weeks for months, and there was a panic buying trend among the FIBC importers all across the world. It took the manufacturers 5-7 months to clear backlogs and operate to capacities. Still, it wasn’t the end of the problems as the FIBC industry found itself amidst another Global crisis from the Shipping Industry. Huge backlogs, exuberant freight rates caused panic, and the trend continues.
Another setback for the FIBC industry was increased raw material prices. The prices have gone significantly up due to increased PP and PE demand in the Global Health Service Industry. The manufacturing facilities have survived it all and continue to provide their services to their customers.
We are sure about one thing that the impact will last far longer than what a common buyer anticipates as India finds itself in the third weave of record COVID cases. Manufacturers are all cautious now, and many of them have already taken significant steps to ensure their workers’ safety by vaccinating their workforce, following the COVID safety protocols.